Carrier cutting rates

OntarioVanMan

Retired Expediter
Owner/Operator
And here I thought they were a happy-go-lucky bunch. Just look at Moot. :cool:

happiness is fleeting...just look at Underdog...November he was at his end....today he is ready to buy the COE a dinner...funny what a load or 2 can do...;)
 

BigBadBill

Active Expediter
We are a team in a straight truck with E-1 and as I read through these I can only laugh. we knew pay decreases were coming but we knew they were coming for the right reasons. We had our most profitable months in January and February than we have ever had with any other company and in this industry these months are usually slower months as we all know but we are running miles we usually only see in the busier months. And I believe E-1 when they tell us more miles are coming because we have already seen it. We saw a team from a competitor 'meow' company at the truck stop the other day who had only 1300 miles in a week. we ran that in two days. so everyone can make jokes and laugh at our rate decerases as much as they want but all i can say is we have the freight we are running non stop and our paychecks will not be affected by the change because we are seeing more miles now than we have in the last year and it will only get better from here. How many of you can say that? We have been with E-1 for 2 years now this company has never given is reason to believe that what they do is for the better. Its one of the best companies we have ever worked for. Now I have to go because we have to hit the road. Just dropped in PA and heading to pick up a load in PA to Laredo for Monday drop and redlivery Laredo for drop in Michigan for Tuesday night. :D

Let's see if I have got this straight - you are running as many miles as you can at a higher rate but getting paid less you are going to be able to run as many miles as you can.

Seems to me you are getting the same miles but for less money.

Team ST should be getting all the miles they can handle. Most teams I speak with say they can't run any more miles than they are getting.
 

Rocketman

Veteran Expediter
An old hand in the factory where I used to work once told me "No matter how stupid or misguided a new policy might be, some will love it, some will hate it and some won't care". Those making these decisions are just hoping to keep the ones that hate it to a manageable level. If they can control the damage, it's all profit once the dust settles. Never, ever be fooled into thinking that high level managers in multi-million dollar, publicly traded companies don't know exactly what they are doing. Ultimately, your profit or loss is not their concern.
 

ATeam

Senior Member
Retired Expediter
Never, ever be fooled into thinking that high level managers in multi-million dollar, publicly traded companies don't know exactly what they are doing. Ultimately, your profit or loss is not their concern.

To be fair to the managers, keep in mind that they actually listened closely to owner-operators when they bought the company. By listening, they quickly learned that there is a large number of owner-operators out there who say "I want to stay busy" and "I want miles."

Now, if you are a business person who seeks to make money, and if you learn that you can keep drivers happy by keeping them running, would it not make sense to recruit the ones you can keep running at the lowest possible price? If people will work cheap, why pay more?
 

davekc

Senior Moderator
Staff member
Fleet Owner
Very true. Kinda like "sticking lipstick on a pig".


pig-lipstick.jpg
 

Rocketman

Veteran Expediter
To be fair to the managers, keep in mind that they actually listened closely to owner-operators when they bought the company. By listening, they quickly learned that there is a large number of owner-operators out there who say "I want to stay busy" and "I want miles."

Now, if you are a business person who seeks to make money, and if you learn that you can keep drivers happy by keeping them running, would it not make sense to recruit the ones you can keep running at the lowest possible price? If people will work cheap, why pay more?
Oh I don't disagree with that at all. If they want to be the "cheap rates with lot of miles" carrier, they can do it...and if they can find contractors that are willing to drink the koolaid... why not? Honestly, they can probably get all the vans they want (probably a raise for some). I'm not so sure about straight trucks though. I have a feeling the koolaid will need a bit more spiking :D
 

bubblehead

Veteran Expediter
Now Dave, I think you are going over board on this subject. I talked to this E1 Driver and he seemed happy with the change.
E1 Driver.jpg

And thats all that really matters isn't it?
:cool:
 

Moot

Veteran Expediter
Owner/Operator
Here's some more hot air.
 

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CharlesD

Expert Expediter
To be fair to the managers, keep in mind that they actually listened closely to owner-operators when they bought the company. By listening, they quickly learned that there is a large number of owner-operators out there who say "I want to stay busy" and "I want miles."

Now, if you are a business person who seeks to make money, and if you learn that you can keep drivers happy by keeping them running, would it not make sense to recruit the ones you can keep running at the lowest possible price? If people will work cheap, why pay more?

That business model might make sense in the short term, but eventually the quality drivers are going to want a little more and you're going to have to pony up to keep the good drivers. You keep running with the bottom of the barrel drivers and your company reputation will suffer or you'll have a huge turnover.
 

Suds43

Seasoned Expediter
I don't know how anyone can make any money in a straight getting $1.24 a mile let alone $1.12. Am I missing something?
 

ATeam

Senior Member
Retired Expediter
I don't know how anyone can make any money in a straight getting $1.24 a mile let alone $1.12. Am I missing something?

You are missing the fact that many drivers don't know if they are making money or not. They live load-to-load, paycheck-to-paycheck, truck repair to truck repair without a clue about how much money it takes to run their truck and how to price their services. They want more miles because that gives them a bigger check at the end of the week. They want to stay busy because they know sitting still does not pay. All carriers know this fact of the trucking industry. Some use it to their advantage, exploiting the ignorance of the working poor to increase their profits.
 

Speedwagen

Seasoned Expediter
You are missing the fact that many drivers don't know if they are making money or not. They live load-to-load, paycheck-to-paycheck, truck repair to truck repair without a clue about how much money it takes to run their truck and how to price their services. They want more miles because that gives them a bigger check at the end of the week. They want to stay busy because they know sitting still does not pay. All carriers know this fact of the trucking industry. Some use it to their advantage, exploiting the ignorance of the working poor to increase their profits.

Kind of like being thrilled having "steerage" tickets on the R.M.S. Titanic..
 
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